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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Cummins (CMI)
Cummins Inc. is a leading global designer, manufacturer and distributor of diesel and natural gas engines and powertrain-related component products. Powertrain components include fuel systems, turbochargers, transmissions, batteries and electrified power systems, among others. Headquartered in Columbus, IN, the company offers products to original equipment manufacturers (OEMs), distributors and dealers through a network of roughly 600 company-owned and independent distributor facilities in over 9,000 dealer locations in more than 190 countries and territories.
CMI sits at a Zacks Rank #3 (Hold), holds a Momentum Style Score of B, and has a VGM Score of B. The stock is up 1.5% and up 4.3% over the past one-week and four-week period, respectively, and Cummins has gained 56.6% in the last one-year period as well. Additionally, an average of 410,474.16 shares were traded over the last 20 trading sessions.
Momentum investors also pay close attention to a company's earnings. For CMI, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.44 to $22.12 per share for 2024. CMI boasts an average earnings surprise of 4.2%.
CMI should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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Cummins Inc. (CMI) : Free Stock Analysis Report